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tv   Countdown to the Closing Bell  FOX Business  October 2, 2012 3:00pm-4:00pm EDT

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yesterday gains in the dow jones industrials? spanish prime minister said he or frankly anyone in spain will make a bailout request. speculation about the timing of this request is really causing investor uncertainty back in the u.s. many believe and say it is coming, they just do not know when. they would like to know when. when the head of spain is saying, no, not yet, it gets them upset and you start to see red on the screen. the dow jones industrials crossing the unchanged line 11 times before flipping into the red for the rest of the day. we always look for the silver lining here. one stock way up. metro pcs leading the s&p 500 today. seeing double-digit gains in hindi a new high today after reports that george telecom was close to a deal to merge it t-mobile branch with metro pcs. could not get it done with at&t.
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consumer sentiment, that is how you guys feel about buying things, it has a four month high. holiday sales are expected to rise. that is lower than the past two years. coming up this hour, arthur martinez, the forming chairman and ceo of sears joins us in studio. jcpenney under his stewardship. sears had its most successful year in history back in 2000. but, that of course, was then, this is now. what does arthur martinez have to say. he sits on the board of that aig. we have so much to talk about this legend in the industry. he has only here on fox business. we have read on the screen. gold not as shiny as usual.
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let's get right to the floor show. teddy weisberg, the markets are down. i have to ask you about sears. such a sad thing it was booted off the s&p 500. i am so excited to have arthur martinez on the show. >> well, you know, actually the stock has done quite well this year. essentially compared to jcpenney. i have no idea why some stuff get back out and some stocks get added. there are a couple people sitting in that room in a tower someplace that make these decisions that probably think a lot of sense to them, but sometimes make us scratch our heads. eleven sears was one of the original person be 500 companies. >> perhaps there is a reason for
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this. i guess those folks trying to get that average is up to up to date. at the end of the day, it does not seem to have a big impact on the averages. it is just a are supplied group of companies. they replace one with another. liz: we have the s&p 500 down as well as everything else pretty much. is this all worry about when spain will pull the trigger and asked for help? >> i would say a couple of things. first of all, whatever happened in europe continues to trump everything else that impacts the market. to that degree, i guess you are 100% correct. you know, the markets continue to be buffeted by whatever the headline news is. you have a good number, you have a bad headline. the markets react accordingly. it is kind of scary. there means there is no underlying conviction. the market are trading at recovery highs.
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i think the market has plenty of reasons not to be trading where it is, but the reality is, it is obviously looking at something that none of us seem to be able to recognize at the moment. i would say one thing about today, if you look at the screens, even though the averages are down, the screens are very next. there is almost as much green as there is red on the screen. yes, the averages are down, but the underlying tone is probably not as bad as the averages are indicating. liz: except for the dow jones industrials. merck is only one on the screen. i will tell you what i recognize. we can now go to chris at the cme. obviously, when you look at it in aggregate, we have had some really good numbers over the past year on how the dow jones, nasdaq and s&p are doing. what are you seeing in the pits today that sort of rings this market down? >> i disagreed with your earlier
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guests. what you are seeing on low volume we are opening higher every single day. that is that sugar buzz you'd in the morning, that money devalues all of a sudden we have a weaker dollar today. when it does, you know, try to test those morning highs, it fails. a series of lower highs and lower lows to everyone watching into a trader that means there are bad things about to happen. creeping down to the 1435 level on the s&p, if we break through that, all of us that if we are range found again. one bad indication out of europe , we are in for a big storm. liz: it is not today. gold is down. we also have a weaker dollarr against the dollar index .the
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index, by the way, is a basket of about six competitors. including the euro. it both bottles me enough gold down, oil down, everything down except for -- natural gas looks pretty decent. >> natural gas goes up every day. i kind of agree with what teddy said. the only truth is a market. it can make the same exact argument about natural gas as he was making about the stock market. natural gas, there is ton of it in storage. there is tons coming off the mountain in north dakota. it keeps going up. gold, i think, just consolidates. there is always something else there. i would say, i hate to use that term -- i actually agree with the second speaker.
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right now i think people bought it down to $1700 they sell at 1800. liz: gold had its best quarter in qe3. good to see all of you. thank you so much. chris, teddy, elliott, our stock traders. if you do look over the past year, the stock market looks right. up double-digit percentages. then, the splits. the market versus the economy. the u.s. falling into recession pits again. our investors and for a stock surprise? mike holland thinks so. he is the chairman of holland and company. he is spending the last hour with us. you think there is a stock surprise that is a good one coming up? >> yes. i think if you had to characterize my years doing what
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i am doing, it is as a survivor. you have to be prepared for surprises in both directions. whenever we talk about you and i, that things can happen, we just heard three people talking about that. the things can happen, as well. ted weisberg is so smart. so good to listen to. his comments about what is going on, i think, are always -- liz: i love teddy. he has been well funneled and it is kind of obvious, it is the government trade, the central bank trade. >> i was shocked to not hear him say that. bernanke said a few years ago we have a problem. it would not be solved by the people in congress or in the white house. he actually said, this is not a deep secret, he can get the stock market and financial assets to go up in price. he is continuing to do it. last week with a billion dollars -- the stock market is key.
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we have this stock market being pushed by the fed which is the biggest bank in town. they are bigger than all the chores and hedge funds. the economy is not doing well. that is when he said he would stops along the the economy is not in play. liz: the nasdaq up 33% year over year. the s&p up 31%. what is the plan? what would cause that surprised? >> i think there is also a possibility of a negative surprise. my guess would be, not a prediction, my guess would be we could have all three things that have been concerning the market for the last three years. china, europe and the u.s., all three of them, could be a little bit better going into december. you can make the story up as well as i can. china will have a november 15 and over good that will be done. a lot of things on hold.
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things have been on hold with the change of leadership. they have said, i was over there two weeks ago, they have told me they believe the people on the ground, not the people -- they would get a better fourth order. the third quarter would be the low quarter. europe will get a little bit better. the u.s. will have a change by the end of november. liz: never count out the chinese government jumping in to fix things. mike is back in a couple of minutes. two energy place he likes right now. who among you will be spending more this holiday season. i know my floor crew will be getting me a great presence. retail sales should rise about 4.1% this holiday season. that is actually slower growth in the past few years. a fox business exclusive with arthur martinez. former chairman and ceo of sears
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during the glory years has been 2000. he is in the chair. he is the chairman of hsn also. we will get what he really thinks about how sears is being run right now. stay tuned. ♪
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♪ liz: power mover of the hour is kraft food group. the ceo rang the opening bell at the nasdaq stock market. the spinoff of crap -- kraft food. and i'll move up about 2%. moving down about .5%. regaining the highs of what we have seen for the past month. a look at what else is moving the market, we can take a look at that dow jones industrials.
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microsoft up for pennies. this after being overtaken by google. not a bad day for google. let's go to standards that at the cme and nicole petallides at the new york stock exchange. sandra: a lot of the meets at the cme doing very very well. they are moving higher on the expected short supply on a lot of these animals. hogs up. natural gas prices also up. live cattle also going up with those lean hog prices. boosting approaching commodities good hog prices hitting a five week high. natural gas high about prospects for colder weather. you start talking about the heating demand. especially on the east coast. your biggest laggards on the cme today happened to be grain and
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soybean prices. we prices down. by the way, soybean prices hitting the lowest price since july. remember in the middle of the drought, soybean prices coming down after the usda say the pace of harvest is picking up to it fastest pace in three decades or at least they began collecting this data. about 41% of the overall soybean harvest has been harvested. our -- down today. that winning streak coming to an end today. back to you. liz: i want to flip it over to nicole petallides. nicole: i am upset about some names that are moving here to the upside. you noted, when you show the dow jones industrial you had mark as the winner. it turns out truck stops are
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doing well. pfizer, eli lilly, community health systems. on a day where you see the downtown, you do have some names hitting some new highs. they are in the drug related sector. the bank index as well. the retailers are lower. some of these drugs stocks are showing some resilience. back to you. liz: general motors. it surely is interesting. the guy who shorted lehman brothers. david einhorn was that guy. he hammered them right into the ground. let me get you republican senator chuck grassley. demanding geithner come clean about the libor and all. the senate are calling on
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regulators to create a new "american based index to replace the london bank offer rate." you name it, and a lot of people look at libor and base their interest rates on that. charles gasparino. charles: kind of an interesting low in this whole libor investigation. closed the dismissal of bob diamond. one of the principal players. remember how libor is created. it is a bunch of banks submitting what they think libor should be in a kind of blended together. that becomes the interest rate. it is obviously right for manipulation. you can submit much lower one third that is what they are talking about now. they were low and that investigation. incomes grassley taking on geithner specifically.
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the president of the new york fed, he knew about this manipulation. guess what, he wrote a little letter to some guy, and e-mail to another guy, did not do much about it. liz: is regulated by london bank. charlie: it is regulated by him also. barclays jpmorgan, citigroup, all of them are involved in this thing. it will be a big mess. grass lake comes in today is really starting to turn up the heat. tell us what you knew. tell us if you considered ramifications for not taking a stronger stand at the time. there is an impact on monistic polities. municipalities have all of these contracts or financial derivative to balance the books. they lose money, the value of those investments go down when the interest rates go down. opposite of what usually
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happens. grassley is telling geithner, listen, let's make our own rate up. why are we doing this, they think almost everything, libor is the most universally used rate on something that could be so manipulated. it sort of put together by this trade group. liz: what are we letting the banks be part of it anyway? charlie: he said it in his letter. why don't we do in american based interest rate. something like that. i tell you, i think it will pick up a little game now. that is something you hear a lot in regulatory circles. let's get rid of this libor thing. liz: computerize it. charlie: do you want to hear something funny, this shows you -- i will always thought libor was based on a computer. you hit a button and out popped libor. you know what i am saying?
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[laughter] liz: take out the a motion. charlie: cheating. [laughter] liz: i know. it is so pathetic. charlie: listen, the banks, a lot of them do not like me to i try not to beat up on them all the time. i think the schneiderman suit against jpmorgan is a joke. jpmorgan, no offense, was asked to take over bear stearns. liz: we are so vulnerable through our children. charlie: think about it. signing in other stupid scandal. i did not think it was a big deal. robo signing, how dumb are these guys? liz: charlie gasparino. thank you very much.
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closing bell ringing in 38 minutes. one of the original s&p 500 stocks from way back when. sears booted from the industry recently. the man who has been at the helm of some of the biggest retail companies in america, arthur martinez. he is the chairman of the home shopping network. the former chairman and ceo of sears. he is with us exclusively. a whole bunch of thoughts on retail. he is making free luxury picks. ♪ look, if you have copd like me,
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liz: the fox business market check. the stick politically retailer express. shares sinking to a new low after the company said its third quarter earnings would missed forecasts. this is a big hit, down 22%.
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the retailer said higher promotional activity contributed to the cut in estimates. you want to get people in the door with sales and promotions, but then you see what happens. it hurts our margins. my next guest has retail inside and out. under his reign sears had its most successful year ever for, and that was back in 2000. which retailers to see love right now? he will name them. what are his thoughts today? joining me now in a fox business exclusive. arthur martinez, former chairman, ceo and president of sears, also prompted tough chairman of hs in five and a member of the board of a ag. you're a busy guy. >> i sure am. i love it. it. liz: first this years. but it was being booted out. caught my heart a little bit. my mom used to buy her shoes from the catalog of sears. a big deal in canada. i saw that and i thought, that's really sad. imagine what you must have thought having done well for the company. >> is always a disappointment when you fall from the exulted
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ranks. i remember when we were kicked out of the doubt and number of years ago and what a blow that was, especially being replaced as we were at the time by home depot. but it has a tremendous effect on in tomorrow when a company is removed from the premier averages in the marketplace. it also has a tremendous effect on the investor base because a lot of the index funds cannot invest in you anymore if you're not in the s&p 500. has a cumulative effect. liz: the hedge fund manager at the esl, you know, best of intentions taking overseers. but he has had it for years. what is he doing wrong? i mean, it has been a pretty decent year to date move for the stock. what is going on there with the strategy? >> this is, of course, a hardcover edition for me to have. liz: and the bush at. >> you have done it before. so it has been a pretty dismal downward spiral. the evidence has been quite clear. every single quarter since he took over-comparable in store
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sales. and now he says he does not care about those, but it is a measure of their relevance to your customer. if you're not showing positive you're not trying customers unsatisfying and in store. second of all, the executive suite has been a revolving door. i don't know how many ceos, cfo's, chief marketing officer see has had. the company has been starved for investment. investment in stores which are now unattractive and unappealing investment in marketing and investment of inventory. he is now selling some assets to generate a liquidity buffer, and that think the cumulative effect of all this points to a very unhappy ending. liz: does is survived? >> it takes retailers' a long time to tell. it does not mean it is impossible to restore them, but this has been a long downward spiral. liz: it does that actually hurt in the j.c. penney and ron johnson has taken over have not had a good strategy either. one strategist said he should be writing a thank-you note because shoppers from j.c. penney are so fed up there now going to sears.
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>> well, it's another example of what i would consider to be a radical and risky plan that was not properly stress tested before it was announced the public of city employees, vendors, the entire investment community. it has two elements. number one, he, like mr. lambert , have some disdain for the promotional and sale orientation of big box retailer like department stores. the fact is, those strategies can work, and i . to macy's into coals as examples of two chains that do a very effective and very profitable job using the strategies. the problem is not in the strategy but in the execution of the strategy. what he has now gone, as we have seen from the-20% results, he has left his customers behind. with the get them back? i just don't know. liz: j.c. penney down 8% year-over-year. there are companies that you think are doing it right, and you have been the chief financial officer years ago. you no luxury. you're picking three luxury
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names. [laughter] >> yes. at some great personal risk, yes. liz: that at all. people want to hear from insiders who have been in the business. >> i will say up front, not going to name any of the two companies that touch the recent -- retail space on his border said. that would not be right. number one, i have a lot of hard for burberry. they have had a lot. i think the job that andrew has done at the company is absolutely superb. and a long-term prospects remain very, very good. i would point to progress as another company which even though burberry had it's like up here has done exceptionally well in the first half of the year. sales are up some 40 percent, profits 50%. my second favorite, the parent -- liz: which is used lately. i see them everywhere. >> ubiquitous, global in scope. absolutely fantastic job. there is no question about it. i also think ralph lauren polo is an example of enduring success in the luxury market
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place and have a lot of support for them. liz: getting a lot of attention. >> a wonderful story, especially if you are of founding shareholder. a lot of wealth. i would question of the mine's better than mine about whether the evaluation is appropriate in this marketplace, but it has been a hot story and is a great brand. affordable luxury. liz: all names you will put up on our facebook. "countdown to the closing bell." whenever. i want to ask you because you do sit on the board of the edgy. the government's has pretty much made a big stock sale and now only as a minority stake after bailing out aig said. will the company successfully reemerge? will the taxpayers -- >> i hope this is the last time anyone ever refers to a ig as the bailout ensured because i think we're past that. we received exceptional assistance from the u.s. government. it was much appreciated at the time. a long conversation about the
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financial system at the time that support was given, but we have systematically under the of our ceo worked our way out of that situation. the government has been fully repaid. we have re-emerged as a small but profitable company. we still have a $60 billion market cap which is nothing to sneeze at. we have the world's largest property and casualty insurance business and a very big u.s. domestic retirement and life-insurance business. we are very excited about our growth prospects. the balance sheet has been fixed, and i think we're on our way. liz: it's great to have you, once again, especially hearing about retail. how do you think the holiday season shapes up? >> better than the forecast. liz: better than the 4%. we have a little uptick in consumer confidence noted of the past couple of months. >> consumers, last year's sales were up five and a half% during the holiday. i think we will do at least that well this year. liz: arthur martinez. former chairman and ceo of
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sears, now chairman of age as income as its on the board of aig, cfo. what am i missing? >> husband, father of two and five grand kids. liz: great to have you. nice to have you. come visit once again. >> i sure will. liz: closing bell in 26 minutes. americans continue to buy new cars and trucks at a pre strong pace. particularly the smaller cars. let's go to jeff flock for all the numbers. and lockheed martin now telling fox business it will not be subject to any defense related budget cuts at the start of the year. lockheed martin coming out bullish. rich edson has the whole story live at the pentagon. don't miss it. ♪
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you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy.
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lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. ♪ >> i'm robert gray with your fox business brief. wall street continues to struggle with less than 30 minutes in the trading game. investors skittish of the return of the upcoming earnings season. spain's prospect for a bailout request and possible sovereign credit rating downgrade. right now the dow is off 46 points, the nasdaq now slightly higher. liberty media will soon find out how its takeover bid for serious ex-im is being received. the federal communications commission has set a november 1st deadline for anyone opposing the deal to buy an initial protest with the agency. the sec is moving closer to evaluate the application. and pat smart is replacing some no go and the s&p 500.
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the independent refiner was bought by energy transfer partners. $5 billion deal expected to close this week. now we continue our "countdown to the closing bell" with liz claman. ♪ liz: well, the nasdaq plunging into positive territory of three points. the dow is still down 49. try to come back. speaking of coming back, once again september auto sales numbers out this morning showed most of lawmakers posted gains for last month. let's sit down to nicole petallides at the new york stock exchange to see how this, the stocks are actually doing, the other retailers. >> reporter: that's right. take a look. $30 per share, up over a full percentage point. this was a $4 stock back in early 2009. certainly this one is doing quite well and has had quite a run up over the last three months or so. 37 percent.
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now, i have another name for you to take a look at, and nation. automation is at an all-time high today. here it is. up to one 1/4%. looking good. and, by the way, bank of america back in september time, september 21st at a buy rating on this. continue to go up. two names on the move and some gains. liz: and i just brought up the rest of the parts. ap, up nearly a percent, so they, too, they are the retailer do-it-yourself for. advanced sub parts having a tough year today, but nonetheless climbing back up. we are following all of the hot stocks today. let's shake it up with the team. rich edson at the pentagon. adam shapiro in new york. jeff flock in chicago. we were just talking with nicole about the other retailers. how about the automaker's. >> reporter: we can all debate about whether it's a recession, but the auto industry is not in recession. at full-blown recovery mode, but i'll tell you, this month
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interesting numbers because better off if you are doreen, german, or japanese then you are an american this month. take a look at the foreign automakers numbers. big dramatic gains from toyota today, up over 40 percent. vw up 34%. sunday up 15%. your buddy says, we cannot make cars any faster than this. don't look to any more growth. we are making a mess fast as we can. on the u.s. side a lot more flat. afford unchanged. gm, about two points committee appointed a half. chrysler had a nice month. the stocks, gm doing pretty well in terms of the stocks because they actually issued a pretty rosy forecast going forward for the rest of the year in terms of sales. the f150 did not sell much which as you know is the most grandest selling vehicles. sales were flat.
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ford stock down a little bit. liz: the focus, gaining some share. i have been watching it closely. we should mention coming up at 4:00 p.m. eastern, smart car. the uc? of 120% for their sales year-over-year. 95 percent. yes. the little guy. the brand's new smart card, an electrical vehicle. mercedes now owns this company, so they obviously. not bad. let me get to jeff flock. what stalker you looking at? >> reporter: looking at defense stocks. continued uncertainty about the $50 billion in automatic cuts. the defense apartment here at the pentagon again today reiterating that they are not specifically planning for those cuts. they want congress to reverse them. meanwhile, the administration is saying, all of fun sending notices saying you will layoff people. we still don't know what the effects of the cuts will be. however, republicans are saying
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that move by the administration purely political. don't want the layoff notices put out in the mail. so still continued uncertainty about these -- the fiscal cliff, especially the cuts from the pentagon. liz: lockheed martin saying they don't expect it to be as bad as everybody thought. >> reporter: saying they will hold off. they won't lay of the -- layout in the layoff notices. the defense industry is still digesting this. liz: l. shapiro. >> straits apple. the end result, his word was catastrophic for whoever loses. apple could potentially lose these fights. coming down and 2014. the other thing he said when i was speaking to him because not only are these suits and played. what is apple going to be doing after everyone gets off?
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their profits are driven by ipad and iphone. what about next year? your galaxy, the tablet, samsung selling again. apple faces had wins and they say be careful. liz: catastrophic for whoever loses. did we to see that. the closing bell ringing in exactly 15, make that 42 -- 14 minutes. back after the break. he is telling them undervalued. you have to hear this. stay tuned.
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liz: he believes that there will be a cue for surprise, maybe a good one for stocks. get in there now. at least in certain names. where should you be putting your money? mike collins. once again ready to name names. i want to keep everybody honest here. yupik berkshire hathaway the last and you were here in april.
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it is up 11% since then. >> the thing that's keeping me honest? liz: we like to keep everybody honest. hey, call us when you do it well. >> we do it both ways. liz: the thing that is because the housing components are doing a little bit better? and me, you have shot carpet, acme brick, nebraska furniture mart. >> few people know better than you do. but the reality is kind of all of the above plus some other things. a great stock portfolio which -- and great balance sheets. people underestimate the importance of the corporate finance work that he estimates the company. in times like this when interest rates are so ridiculously low he is a seller of bonds. leverage is that this balance
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sheet. we both know the hedge funds, for example, have done a lousy. way behind the markets because they're structurally set up in a way that they have to be short. so buffett has had the opposite. they have owned these wonderful insurance businesses and all of these other businesses. the stock portfolio, and they have had this wonderful leverage to go out. liz: you still like it. >> i still like it. liz: you still like it. >> now, reviewers, the stock is up a lot. if i did not own it, what i buy 100% of a position? absolutely not. wait for the market to take some out of it and then bought a little bit. liz: to energy names. exxon. >> both of those. we have someone on the floor talking about how natural gas is just crazy, going up and things are -- natural gas has gone from $12 to $3 -- i think it's part of the worlds solution. the rest of the world, your
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parents will use natural gas. so happens to be if he did not know what businesses, you could look at the balance sheet. a really good company. you look at the business of scent. it's very undervalued. exxon, the same way. we talked about it. a masterful company. liz: you on both cool and apple. if you have to advise people to buy one or the other right now considering what has happened, is there one? >> no, i would buy both. a couple of weeks ago. i own both. you don't have to buy just one. it is a hypothetical that i have to answer. the answer a few weeks you will have been easy. apple just topping out well over several hundred. as with per share, the stock is out. maybe not a full position. you will learn something around $50 next year, so both of them trading. $50, that's a lot of money, but the stocks are at 65700. that is a very pedestrian ridiculously cheap for two of the world's good companies.
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liz: 11 both. good to see you. mike holland of holland and company. he is the chairman. seven minutes away from the closing bell ringing. who are the superstar guests of the day? you can only -- always find a way early. follow me on twitter. we would love to have you join the party. coming up after the break and run to tell you one spicy stock to shares are cooling off today. stay tuned. ♪ follow the wings.
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not that chipotle after david einhorn by a long and he says short this stock. he does not feel the competitive environment -- it is down 4% but also down 6% year to date. tough time when david einhorn piles itown by it is coming back. david asman down 36 points. dave: david einhorn was shorting one stock but also long enough. when david einhorn speaks people listen. cheryl: when nicole petallides speaks we listen. the new york stock exchange giving up early-morning games. nicole: at talk to some traders talking about the fact we have been in a narrow range and the choppy market and that is the
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day today coming close to the unchanged line. dave: apple is in the green. earlier it was in the red and had the $650 mark and was $700. people saw 650 and it won't be this low for long. nicole: people see that as a buying point. people like to bion that and go into that category and they go into that category. cheryl: chipotle diving today but made some bearish comments on the other side and as i mentioned general motors and warren buffett got in a little while ago. nicole: you don't fight einhorn. going against that particular day. the competition is up and general

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